Foxconn, also known as Hon Hai Precision Industry, reported its highest August revenue on record at NT$921.8 billion, or $29.15 billion—a 51.98 percent increase from a year earlier. The company expects third-quarter profit to exceed analyst estimates, citing demand for AI servers and peak information and communication technology shipment seasons.
August marked the second consecutive month Foxconn's revenue surpassed NT$900 billion, following July's NT$946.5 billion. The company attributed the growth to robust server demand and higher shipment volumes.
The shift in Foxconn's business mix is stark. Its cloud and networking products division, which includes AI servers, accounted for 51 percent of second-quarter revenue—the first time server revenue exceeded half of total sales. Smart consumer electronics, which encompass iPhones, fell to 29 percent of second-quarter revenue. Foxconn remains Apple's primary iPhone assembler, but AI racks now drive the sharper growth.
Second-quarter results underscored the momentum. Revenue reached NT$2.53 trillion, a 41 percent increase year-over-year, while net profit rose 35 percent to NT$60 billion, surpassing LSEG consensus estimates of NT$58.8 billion.
Chairman Young Liu has set a target to double AI rack shipments in 2026, a target that aligns with visible demand signals: Dell's growing order backlog and Micron's sold-out memory chips point to sustained hyperscaler spending. As Nvidia's largest server manufacturer, Foxconn sits at the center of the AI infrastructure buildout, and its factory floor results suggest the orders are real.
Hyperscalers' capital intensity tells the scale. Amazon, Alphabet, Microsoft, and Meta collectively planned as much as $725 billion in capital spending in 2024, primarily for AI data center equipment. That level of investment has sparked debate among some investors about whether the cycle can sustain.
